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Home | Blogs | Will The Smartphone Market Share Recover In 2020
Sat Nov 23 10:14:22 UTC 2019

Will The Smartphone Market Share Recover In 2020

The smartphone market and its related supply chains remain uncertain, mainly due to uncertainty in trade negotiations between the United States and China. However, the expectations of aggressive promotions and offers in the second half of 2019 to clear up any channel inventory and get consumers excited about the next wave of smartphone technology should lead the market back to renewed growth.

According to the smartphone market report, as of 2020, the smartphone market is expected to gain from 5G, and its global size will hit approximately 1.9 billion units by 2022, reflecting a 4.1% CAGR  for the period 2017 to 2022.

Looking closely at the other factors that affected smartphone sales in 2019, we see that Huawei's early ban has left a significant mark on the global market for smartphones.

However, to counteract the decline in overseas markets, Huawei has aggressively increased its market share in China. More than 115 million smartphones are expected to be shipped by the brand in H1 2019, and China's push will help post annual growth in 2019.

In addition to the Huawei trade ban, factors such as extended cycles of upgrades and increased sales of refurbished devices also contribute to the slowdown. Many mobile phone users in emerging countries do not buy a new phone and choose a second hand or refurbished phone instead. Mature markets also saw a more organized and efficient marketplace of devices that have been restored and used.

Combined with trade and tariff risks, the global economic instability dominates the news, but market researchers also expect that there will be hope for the smartphone market in the form of 5G. Commercial implementations have entered several regions, and while 2019 is a transitional year, 2020 will be a year in which 5G will and smartphone growth will accelerate.

So far, 5G has started gradually. But 2020 could mark the real 5 G high-speed connectivity coming-out party. Based on the 5G market report, the global 5G market size in 2017 was 4296 million dollars and is anticipated to grow exponentially by 2025, with a 56.7 percent CAGR in 2018-2025.

This massive growth rate can be attributed to various advancements coming up in the smartphone market such as, Apple is expected to schedule its first, 5G-enabled iPhone phone in 2020. In parallel, next year, the major carriers are preparing massive 5G network launches. Verizon CEO Hans Vestberg recently pledged to bring 5G access in 2020 to half of the U.S. population. While smartphone vendors like Samsung have already launched 5G-capable models, the company and other major telephone vendors are all likely to enter the 5G game as the carrier deployments become more widespread in 2020.

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